Anglo American group subsidiary has entered into an earn-in joint venture (JV) agreement with Canadian precious and base metals firm Luminex Resources over three Ecuador concessions.
Under the agreement, Anglo American will have the right to earn a 60% ownership interest in a JV company, which indirectly holds the Pegasus A, Pegasus B and Luz concessions in return for an investment of a total amount of $50m.
Additionally, the company is required to pay $7.3m over a period of seven years.
The agreement also offers Anglo American the right to acquire a further 10% ownership interest in the JV entity.
In exchange for the additional interest, the company needs to solely fund all the required work up to a decision to construct a mine at the properties.
Once Anglo American completes this earn-in to increase its aggregate ownership to 70%, Luminex will fund its 30% pro rata share of expenses related to the development and construction of a mine at the properties.
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Luminex Resources was formed earlier this year after Lumina Gold carried out a strategic reorganisation of the business.
As part of the reorganisation, Lumina spun out all of its concessions and properties, except the Cangrejos gold-copper project, to its shareholders through Luminex.
Anglo American is required to pay $1.3m to Lumina once it signs an earn-in agreement.
Furthermore, the company will reimburse expenses of approximately $0.3m to Lumina and Luminex.
Anglo American will become manager and operator of the properties. Preparatory works are in progress to continue exploration activities.
During the first year of the agreement, the company will undertake an airborne magnetic ZTEM survey over the Ecuador concessions.